(11~14) Read the following five cases, and answer the question.

[Case 1] Significantly fewer responses to confirmation requests are received than

expected.

[Case 2] Transactions selected for testing are not supported by proper

documentation.

[Case 3] Significant deficiencies in internal control previously communicated to

management are not corrected.

[Case 4] Differences between reconciliations of control accounts and subsidiary

records are not investigated.

[Case 5] Negative confirmation requests yield fewer responses than in the prior

year's audit.

11. [Case 1] vs. [Case 5] : [Case 1] is an example that an auditor may suspect that

material misstatements arising from fraud exist in a client's financial statements. On

the contrary, [Case 5] corresponds to a reduced likelihood of material misstatement,

Because responses to negative confirmations are only received when there are

discrepancies. a lower response rate of the negative confirmations likely would be

indicative of fewer problems with accounts receivable.

A. True

B. False

12. [Case 3] vs. [Case 5] : Of these cases, an auditor may evaluate that [Case 3]

situation is more suspicious about material misstatements of the client's financial

statements than [Case 5] situation.

A. True

B. False

13. [Case 1] vs. [Case 2] : Of these cases, an auditor may evaluate that [Case 1]

situation is more suspicious about material misstatements of the client's financial

statements than [Case 2] situation.

A. True

B. False

14. In [Case 4], This case is just simple mistakes of client's employees. Therefore, [Case 4]

is not an example to be suspicious about material misstatement of the client's

financial statements.

A. True

B. False